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0 sats \ 1 reply \ @siggy47 OP 16 Nov 2023 \ parent \ on: The "Trilemma" That Runs The World meta
Why would the U.S. want to change now(SOFR)? The price it pays for the exorbitant privilege of having the global reserve currency is that their export industries suffer, but that is more than made up for with the ability to export inflation and gain geopolitical control through the IMF and World Bank, no?
I guess none of this matters if the whole fiat debt house of cards is about to collapse?
What they are doing now is rebuilding a domestic, soon regionally decentralized, capital market. Under the LIBOR regime European banks decided on a fixed interest rate that structurally was lower than the US yield would have been. So in every crisis they had in Europe the US banks were subsidising the Eurozone and in the meantime the yield manipulation held capital back from free floating to the states. I think this is the main focus - liberalizing from the City of London and the Eurozone
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